Stock market recap: Trends remained under pressure as higher levels continued to attract steady supply. With price action failing to align with expectations, the near-term outlook remains challenging, and conditions are likely to stay difficult in the sessions ahead.
Indian equity markets ended Wednesday on a cautious note, with the Nifty 50 settling at 23,405.60, down 0.33%. Sentiment was weighed down by heightened geopolitical tensions in West Asia, where Iranian missile attacks targeting Bahrain and Kuwait added to regional instability and pushed Brent crude futures toward $97 per barrel.
Three stocks to trade, recommended by NeoTrader’s Raja Venkatraman:
LXCHEM (current market price ₹164.55)
- Why it’s recommended: Laxmi Organic Industries Ltd is a prominent Indian specialty chemicals manufacturer, supplying essential raw materials to the pharmaceutical, agrochemical, and packaging industries across more than 30 countries. The stock had been recommended earlier as well in our article and it continues to perform quite robustly. The strong uptrend remains intact and despite some turbulence in the market the dips are used to buy into. As steady volume build-up is seen we can look at how this counter is able to generate steady upward momentum. The reaction from every swing pullback augurs well look to go long.
- Key metrics:
- P/E: 57.71,
- 52-week high: ₹240.60,
- Volume: 46.59M
- Technical analysis: Support at ₹150, resistance at ₹195.
- Risk factors: Raw material price volatility, reliance on a single manufacturing hub, geopolitical and logistics disruptions, and heavy shareholder dilution.
- Buy : above ₹165.
- Stop loss: ₹155.
- Target price: ₹189 (2 Months)
IIFL (current market price ₹498.80)
- Why it’s recommended: IIFL Ltd about is one of India's leading diversified non-banking financial companies (NBFCs) focuses on gold loans, home loans, microfinance, and corporate MSME lending. Post the last quarter numbers the stock fell sharply and the fall began to plateau and show some recovery only towards April 2026. The steady recovery since then forming a rounding pattern has resulted in a strong breakout. With prices moving out of the shadows with the recent Q4 numbers we can now look at some potential upward drift. Go long/
- Key metrics:
- P/E: 18.36,
- 52-week high: ₹674.95,
- Volume: 6.96M.
- Technical analysis: Support at ₹430, resistance at ₹600.
- Risk factors: Regulatory compliance, asset quality in unsecured loans, and liquidity constraints.
- Buy : above ₹500
- Stop loss: ₹478
- Target price: ₹550 (2 Months)
JINDALSAW (current market price ₹250.85)
- Why it’s recommended: Jindal SAW Ltd. is a leading global manufacturer and supplier of iron and steel pipe products and pellets. The stock has managed to survive the constant volatility and also taken advantage of the tailwind in this sector. The strong pullbacks into the Tenkan Sen and Kijun Sen lines has seen some steady buying interest that has propelled the stock higher. With the fresh revival in Relative Strength Index (RSI) one can look to go long.
- Key metrics:
- P/E: 20.42,
- 52-week high: ₹260.20,
- Volume: 4.14M.
- Technical analysis: Support at ₹230, resistance at ₹290.
- Risk factors: High commodity price volatility for raw materials like scrap iron and coal, and execution risks tied to government water contracts..
- Buy : above ₹253
- Stop loss: ₹240
- Target price: ₹280 (2 Months)
Stock Market | 3 June
On 3 June, Indian equities slipped in another volatile session, giving up the previous day’s gains as rising crude oil prices and uncertainty over a potential US–Iran peace deal weighed on sentiment.
The benchmarks opened weak and extended losses through the morning, with the Nifty 50 hitting an intraday low of 23,151.50. A mid-session rebound led by auto and banking stocks helped pare some of the decline, but the recovery proved short-lived.
At the close, the Sensex fell 303.67 points, or 0.41%, to 74,346.17, while the Nifty lost 77.95 points, or 0.33%, to settle at 23,405.60. Broader markets also remained under pressure, with the Nifty Midcap 100 index down 0.4% and the Nifty Smallcap 100 easing 0.1%.
The session underscored persistent volatility, with intermittent sectoral resilience failing to offset global uncertainties and commodity-driven headwinds.
Outlook for Trading
Despite elevated volatility, stock-specific moves remained active, making for a highly selective market. With indices largely range-bound, heightened stock-level action could continue to drive incremental participation in the near term. However, wavering global cues continue to cap upside momentum, underscoring the need for a cautious and disciplined market approach.
With trends still unsettled, expectations of sustained positive traction in both Bank Nifty and Nifty IT remain elusive. While war-driven rebounds have supported gradual upmoves in the Nifty, gains have been uneven and repeatedly met with resistance. The index is not yet out of the woods, with rallies now approaching key resistance zones. A sustained move higher will require a decisive close above the median line; without it, further upside remains limited.
As noted earlier, “...A piercing candle formation on Tuesday has now opened up a possibility of a revival yet again.” However, price action has so far fallen short of expectations and will require stronger supportive newsflow to build momentum. On the upside, the 23,500 level remains in focus as a key resistance zone ahead of a broader consolidation area. A move above this band would likely force the bearish camp to reassess positioning, while a break above Tuesday’s high would provide a more decisive signal of strength.
At present, while some buying interest is visible at lower levels, the series has begun on a cautious note, and previously identified support zones may not hold indefinitely without supportive catalysts. For now, these levels are expected to act as interim support as the market awaits clearer triggers.
A long-legged doji in the previous session does hint at the possibility of a near-term recovery. The Put-Call Ratio (PCR) has remained above 1 in Nifty, while Bank Nifty’s rebound from recent lows indicates some put writing and early signs of base-building by the bullish camp. However, in the absence of a clear trend, the broader market continues to warrant a careful and selective approach.
With the index continuing to hold lower levels, Nifty needs a decisive move above 23,500, as options data indicates call writing at higher strikes is capping any meaningful recovery. On the downside, put writing around 23,300 is providing support, resulting in a broader compression in the trading range.
With Sensex expiry approaching, volatility is likely to remain elevated, with the market poised for sharper intraday swings.
Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.
Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.